International Business Competing in the Global Marketplace 11th Edition By Charles -Thomas – Test Bank

Chapter 11
The International Monetary System

True / False Questions

1. The international monetary system refers to the institutional arrangements that govern exchange rates.

True False

2. The gold standard called for fixed exchange rates against the U.S. dollar.

True False

3. The agreement reached at Bretton Woods established the International Monetary Fund (IMF) and the World Bank.

True False

4. Implementing a fixed exchange rate regime increases the price inflation in countries.

True False

5. World Bank offers low-interest loans to risky customers whose credit rating is often poor.

True False

6. The fixed exchange rate system established at Bretton Woods failed due to speculative pressures on the U.S. dollar.

True False

7. Gold was declared as the formal reserve asset in the Jamaica agreement of 1976.

True False

8. Market forces have produced a stable dollar exchange rate under a floating exchange rate regime.

True False

9. Fixed exchange rates lead to speculation and uncertainty in the value of currencies.

True False

10. Adopting a pegged exchange rate regime increases the inflationary pressures in a country.

True False